Redraw to Build New Home

Hi, I plan to take advantage of the builders grant to build a bigger home for myself and family. My thought is to go with a non-bank (lower interest rate) for a loan to buy a block of land, and use my redraw on my current mortgage to finance the build. Once build is complete I would sell my existing home and move into the new one.

1. not sure if a non-bank will loan me money to just buy land, and not knowing i will finance a new build on it myself.
2. will this method still qualify for builders grant?
3. How will the bank apply for builders grant if they are not involved in financing the build? is it something that you can apply yourself? everything i've read suggests its done via the bank.

any help/advice appreciated.


  • First find out if you're eligible. Doesn't sound like you are.

    • Yes, I am eligible based on criteria. Just not sure how I would apply or if bank will on my behalf as they are not financing the build.

  • the grant may go direct to the builder

  • Building in this environment is like throwing money on a fire, the grant is a splash of coolade which has already been factored in to prices by builders and developers.

    But hey, it's not my money so go for it.

    • Drakesy is right…not sure why he is being negged.

      This is the FHOG all again where the only beneficiary is the seller / builder.

      The worst thing is the buyers think they are getting a good deal.

      • Agreed. Both Drakesy and tsunamisurfer are spot on. One need to simply understand the whole system. These grants are not directly helping buyers / first home owners. Modus operandi is announce a scheme for commoners, final beneficiaries are developers, get big party donations, get votes and media attention. Everybody is happy with the outcomes. Buyers don't factor inflated prices by developers. They think it's govt. money. However, it's their own taxpayers money going from govt. pocket to developer pocket.

      • This is the FHOG all again where the only beneficiary is the seller / builder

        The FHOG is still available, and the builders grant is a top up if eligible.

        You appear to have a cynical view of these grants. Can’t imagine what you think of those people who are not eligible for any grants. FYI, most new builds are done by people who don’t use grants at all.

  • The grant would be administered by your state revenue office and you dont have to apply for the grant via the bank. You can always apply for a grant directly yourself.
    People aplly for it through the bank so they can get the money sooner, such as at slab stage. This is the case with the FHOG for NSW.

    Depending on which state you are in, how the home builder program will be paid can vary. Check the revenue office of your state for info.

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